Areas Served: City of Grass City
The City of Grass Valley Revolving Loan Fund is a unique financing program designed to assist small businesses in the City of Grass Valley.
The goal of the Fund is to stimulate economic growth and create or preserve jobs by providing flexible financing to businesses.
The Fund is designed to be used in conjunction with other financing/funds, including bank loans, Small Business Administration financing, equity and other sources.
The City has contracted with Sierra Economic Development District (SEDD) to work with businesses to determine eligibility for the Fund’s loans, assist the business in preparing the Fund’s loans, assist the business in preparing the loan package and work with the business throughout the loan process.
The criteria of the fund is as follows: Loan Size: Loans of $5,000 to $50,000. Larger loans considered on a case by case basis.
The size of the fund loan is based upon the number of jobs created and/or retained as a result of the project.
The Fund will loan up to $15,000 for every job created and/or retained over a specified period of time.
Loan Terms: Up to ten (10) years, depending on the type of financing (working capital, machinery & equipment, real estate, etc.
) but will not exceed the economic life of the assets being financed Interest Rate: The interest rate of each loan is based upon the project’s need and is set on a case by case basis.
Leveraging: There must be at least two (2) private dollars in a project for every one (1) dollar of the City Fund loaned to the project.
The private dollars can be other financing or cash equity.
Expenditures made prior to sixty (60) days of the loan submittal to the City are not counted as private dollars contributed to the project.
Loan Fee: A loan fee of 1.5% of the Fund loan amount is charged to the borrower.
Collateral: The loans will be fully secured.
Collateral on the loans will include liens on real property and machinery and equipment; lease assignments; personal/corporate guarantees and other collateral.
Underwriting Criteria: Underwriting criteria for a Fund loan generally will include a Cash Flow Coverage of not less than 1.25 to 1 and a Debt to Worth of not more than 5 to 1. Job Creation: A primary requirement of this program is that jobs be created for the Targeted Income Group (those with household incomes of 80% less than the county’s median income).
Contact InformationSierra Economic Development District
Address: 560 Wall Street, Suite F
City: Auburn
State: California
Website:
http://ceres.ca.gov/sposedd/loan.html
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